GE CEO Jeffrey Immelt told the FT this weekend that China and India would rescue the corporation from the credit crunch, throwing his weight behind the theory of “decoupling.” Immelt also said that the sovereign wealth funds were also having a big impact on the global economy, which in some ways is helping GE’s returns:

Mr Immelt said it was also important to take into account the impact of sovereign wealth funds, state-run bodies pumping large sums into the globaleconomy and financing large acquisitions.

“The impact of sovereign wealth funds is considerable,” he said. “Even in the US, if we assume there will be some slowing in the economy, the likelihood is that demand for the kinds of infrastructure-related items that we sell, such as medical scanners and power systems, will stay quite high. If you consider the problems in the credit markets, they will not have an impact on the vast majority of GE’s business. In other words, the overall effect on GE will be limited.”